2015 Updated Sustainability & Communications Strategy

February 1, 2015

Table of Contents Executive Summary Introduction Goal & Objectives Target Audiences Strategic Approach Sustainability Framework 10 Sustainability Focus Areas Key Messages Recommendations Measurement Conclusion

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Executive Summary This document provides Saint John Energy’s framework to deepen engagement with internal and external stakeholders, by “doing the right thing” as guided by Corporate Social Responsibility best practices, and through widening the lines of communication. The goal is to “Have stakeholders feel engagement and pride in Saint John Energy as a premier provider of energy, excellent service and value in Saint John – a hallmark in our community.” To achieve relevance, simplicity and memorability, all communications will be shared through a Sustainability lens, aligning with industry standards. The 3 Sustainability Pillars are Environmental, Social and Economic. 10 Sustainability Focus Areas will help Saint John Energy fulfil its Sustainability commitments. These include: Reliability, Competitive Rates, Energy Conservation, Environmental Stewardship, Community Investment, Stakeholder Engagement, Accountability, Employee Relations, Safety, and Productive Partnerships. The tones of our communications are humble but confident, with a focus on both sharing relevant information and active listening. All communications are professional and polished without appearing flashy or overdone, language friendly and accessible. While Saint John Energy references its 90-year history in Saint John as an indicator of its deep roots and commitment to the community, communications are forwardlooking, positioning Saint John Energy as a progressive, innovative organization that is always seeking to learn and improve, always seeking to be better.

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Introduction Saint John Energy (SJE) has been serving customers in Saint John for more than 90 years with highly competitive energy rates, high levels of reliability and excellent customer service. Saint John Energy has an exceptional track record in many respects, while awareness is high; many stakeholders have low levels of knowledge about the utility, its priorities and operations. Saint John Energy begun to change this through a proactive plan to communicate with – and engage – stakeholders. Saint John Energy also has framed its communications through a social responsibility or sustainability lens, as a further demonstration of balance and alignment with the Saint John community’s values. For the Saint John Energy team, this is an important attribute to being a well-managed, best-practice organization that places accountability, openness and transparency as priorities. Strategic Guideposts: Mission Statement

We are a utility services provider of innovative customer-centred solutions

Vision Statement

Continue to evolve as an industry-leading utility service provider

Motto

Excellence in Energy Solutions

Strategic Themes

o o o o

Financial Stability / Sustainability Customer Focus Organizational Effectiveness Employee Well-Being

Guiding Principles

o o o o o o

Safety Results Driven Accountability Honesty, Integrity and Respect Customer-Focused Teamwork

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Goals & Objectives Goal Have stakeholders feel engagement and pride in Saint John Energy as a premier provider of energy, excellent service and value in Saint John – a hallmark in our community. Objectives 1. Enhance and protect the reputation of Saint John Energy as an organization that is reliable, well managed, customer-focused, beneficial to all of its stakeholders and in alignment with community values. 2. Increase specific stakeholder knowledge about Saint John Energy and how it provides value to customers, the City of Saint John and the community in general. 3. Enhance employee engagement through proactive, frequent communications and community building. 4. Create informed, engaged ambassadors of Saint John Energy.

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Target Audiences Target audiences are presented below, categorized as either internal or external. While the core messages remain consistent across all audiences, internal audiences will typically receive more frequent communications with a greater degree of detail at times. Also, internal audiences always receive information for broad public dissemination first, considering they are part of the Saint John Energy family and are in a position to be ambassadors for the utility.

Internal  Employees o Unionized o Non-Unionized o Thought Leaders / Ambassadors (e.g. members of the Employee Council)  Managers and Supervisors  Union Leaders  Senior Management Team  Pensioners  Contractors  Board of Directors o Former directors  City of Saint John o Mayor and Common Council o City Staff with Direct SJE Relationships (e.g. City Manager, Planning Department, City Engineering) o City Staff in General

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External  Customers o Residential o Commercial o Industrial  Partners & Suppliers o NB Power o Perth-Andover Electric Light Commission o Edmundston Energy o PowerShift Atlantic partners  Saint John-based stakeholder groups, such as: o Enterprise Saint John (and the broader True Growth Network) o The Chamber (Saint John Board of Trade) o Uptown Saint John o Port Saint John o Saint John Development Corporation o Saint John Industrial Parks o Discover Saint John

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o Saint John Hotel Association o UNB Saint John / NBCC Saint John o Saint John Regional Hospital and Saint Joseph’s Hospital Beneficiaries of sponsorship and donations program o Local charities Energy and Utilities Board of New Brunswick Province of New Brunswick o Department of Energy and Mines o Department of Public Safety o Department of Environment Canadian Electricity Association News media o Saint John o Province of New Brunswick / regional o Trade (e.g. Progress Magazine, Atlantic Business Magazine)

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Strategic Approach  

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The social responsibility and communications approach is relevant, simple, memorable and achievable. To achieve relevance, simplicity and memorability, the Saint John Energy story should be told and reinforced by describing it through its Sustainability focus. The Sustainability Framework will categorize the key attributes and subject areas that are important to all stakeholders. Saint John Energy provides mechanisms to both tell the Saint John Energy story, and engage stakeholders – giving stakeholders an opportunity to share feedback and participate in meaningful ways. Meaningful engagement is important. This can’t just be about oneway communication. Saint John Energy acts on good feedback that aligns with the utility’s big-picture goals. The tone of communications, engagement and overall implementation of this plan -humble but confident, with a focus on both sharing relevant information and listening. All communications professional and polished without appearing to be flashy or overdone, and it should consistently reflect Saint John Energy’s reputational aspirations. Language should be friendly and accessible, and not riddled with corporate or industry jargon. While Saint John Energy reference’s its 90-year history in Saint John as an indicator of its deep roots and commitment to the community, communications should be forward-looking, positioning Saint John Energy as a progressive, innovative organization that is always looking to learn and improve, always seeking to be better.

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Sustainability Framework The three interrelated pillars of Sustainability typically include simply: Environmental, Social and Economic. Saint John Energy then layers in key initiatives and measurement areas that support each of these three main pillars, as most appropriate to the business.

Environmental

At Saint John Energy, we are committed to: The Environment: We will reduce our environmental footprint today and in the future – and we will help our customers do the same through the promotion of energy conservation.

Social

Economic

Social Responsibility: We respect our shareholder in the City of Saint John, and all of our customers, employees, partners and other stakeholders. We are committed to communicating with and engaging our stakeholders, and investing in our community. Delivering Economic Value: We will provide economic value to our community through the reliable supply of energy at highly competitive rates, the promotion of energy conservation, and our dedication to helping Saint John grow and prosper. The more fulsome story is told through the 10 Sustainability Focus Areas which together weave the story about how Saint John Energy contributes to its stakeholders and community – with consistency and resonance, year over year. Many of these areas align with more than one pillar, which is why we cannot neatly create lists beneath each one. It is rather more like a matrix.

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10 Sustainability Focus Areas Sustainability Focus Area

Environmental

Social

Economic

Notes

x

x

x

Includes maintaining high reliability standards and proactively communicating to customers about any power disruptions (planned and unplanned)

x

x

Includes charging competitive rates, and communicating the benefit of Saint John Energy’s rates with context (considering partner relationships)

1.

Reliability

2.

Competitive Rates

3.

Energy Conservation

x

x

x

Includes helping customers know how to reduce energy consumption and save money, both short term and long term through creative partnerships (e.g. Reduce and Shift Demand)

4.

Environmental Stewardship

x

x

x

Includes the work undertaken through the Environmental Management System and compliance with ISO 14001

5.

Community Investment

x

x

Includes corporate giving on the part of Saint John Energy, and the promotion of employee giving and volunteerism in our community

6.

Stakeholder Engagement

x

x

Includes customers, the City of Saint John, community stakeholders, etc.; and Saint John Energy’s specific efforts to partner in True Growth 2.0 and other key community initiatives

7.

Accountability

x

x

Includes financial excellence, good governance practices, infrastructure management, risk management, transparency, etc.

8.

Employee Relations

x

x

Includes efforts to communicate with, engage, train and protect employees, and further build a sense of community

9.

Safety

x

x

Includes leading and managing safety practices for employees, and promoting relevant safety practices among customers, partners and suppliers, and members of the general public

x

x

Includes Saint John Energy’s contribution to policy development and implementation in partnership with others, and its general approach to being a good partner for the greater good

10. Productive Partnerships

x

x

x

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The Application of the Focus Areas 

Together, the 10 focus areas tell the Saint John Energy story and provide the full picture of the value provided to the City of Saint John, ratepayers, partners and the whole community. This framework is which we package initiatives, measurement areas in alignment with our balanced scorecard, and communications. Reporting on our progress using these overarching headings when assembling the quarterly and annual reports, presenting at stakeholder meetings, creating infographics or updates to our website, etc. We share information from a basis of what our stakeholder’s value instead of internal structure or more traditional operational headings.

Key Messages The following narrative depicts the tone and language Saint John Energy uses to describe its role in the Saint John community and its overall approach to doing business.  Saint John Energy is proud to provide the people of Saint John with the power they need to heat their homes, run their businesses and fuel industrial growth. It’s a job we have been doing since 1922.  We are obsessed with providing value to all our stakeholders, from our shareholder in the City of Saint John and employees, to customers, partners and community leaders. We do this through a focus on sustainability, which encompasses our commitment to the environment, social responsibility and delivering economic value.  Saint John Energy’s rates are among the lowest in our region. On average, residential rates are 10% lower and commercial rates are 4% lower than others in the province. This is possible thanks to the excellent relationship we have with NB Power, our supplier of wholesale electricity. It is also possible because we serve a very specific, urban geographic area, which creates efficiencies across the board for us. This model has allowed the City of Saint John to save about $2 million per year, and the public more than $7 million per year. This benefits Saint John, and our province as a whole.  Saint John Energy remains ahead of the national average in reliable service, minimizing system interruptions as much as possible. Maintaining high reliability averages – and doing so safely – is job one. We achieve this through teamwork, our top-rate infrastructure and our unwavering focus on the customer.

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 We are passionate about energy conservation, in the interest of saving our ratepayers money and helping to safeguard precious energy resources well into the future. We pursue energy conservation solutions in partnership with others in our industry and community, and individually as an organization committed to doing right by our customers.  We are invested in the community of Saint John. We want to help our community prosper by giving back through time, financial support and leadership.  We are accountable to the City of Saint John, our employees, ratepayers and community. We are committed to openness, transparency and active listening.

Recommendations Energy Conservation 1. Continue to share energy conservation information and tips in all of Saint John Energy’s communications (owned media website, twitter, Facebook and monthly bills), paid media (advertising), earned media (news stories) and events (including the Home show, school visits and student tours to appeal to youth). Information and tips should be of high value to readers, and easy to understand. Create an inventory and schedule on a social media application of information and tips as part of the energy conservation initiative.

Community Investment 2. Continue to streamline corporate investment program to areas of social need in Saint John. Continue to aim Saint John Energy’s corporate investment budget to help address social need in Saint John. The three areas of social need encompass: 1. Education – Scholarships and programs to help needy students achieve success at school and continue their education ($25,000 annual target) 2. Community-Building – Support to organizations like the YMCA, United Way, Vibrant Communities, Big Brothers Big Sisters, True Growth 2.0, etc. who have a broader mandate to help those in need in Saint John, by helping to build strong communities ($50,000 annual target)

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3. Food & Warm Shelter – Support to smaller charities that have as a part of their mandate a goal to address the more day-to-day need of warm shelter and support, for people of any age (e.g. Hospice Greater Saint John, First Steps, Romero House, Rocmaura Nursing Home, etc.) ($25,000 annual target)

3. Continue to communicate commitment to community investment It is important to communicate information about Saint John Energy’s community investment approach (e.g. Social Media). This communication is about accountability and transparency.

Stakeholder Engagement 4. Continue Saint John Energy presence in social media Twitter, Facebook, and YouTube. Social media is where many members of the public spend their time communicating and forming opinions – people like your customers.  Twitter – Twitter is used to communicate time-sensitive, newsy information, like power interruptions (planned and unplanned) and event-related information (e.g. ‘Visit us at the Atlantic Homeshow today at 4 pm for tips on energy savings.’).  Facebook –Facebook is used to engage with audiences about energy conservation, as a means to share other corporate information in ways that provide value to others, and as a way to celebrate successes that matter to the community. Begin using Facebook to invite customers and others to take part in contests and post their own ideas on how to reduce energy consumption.  YouTube –Short, informative videos as part of the website, and promoted on Twitter and Facebook. The videos are on YouTube and to be continued by packaging them on a YouTube channel as more are created.

5. Distribute a corporate eNewsletter quarterly eNewsletters are an efficient and effective way to share information with a range of stakeholders. The eNewsletter features corporate news and information, in alignment with our 10 Sustainability Focus Areas, and offer opportunities to provide feedback. Stakeholders are able to sign up for the eNewsletter on our website’s homepage.

6. Establish regular schedule of formal stakeholder engagement to feed into Saint John Energys annual planning and reporting process

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7. Continue informal stakeholder engagement in Saint John, on the part of Saint John Energy’s leaders. Like many small communities, personal relationships are the backbone of business and community-building. Saint John Energy’s senior leadership and Board actively take part in the community through: o o o o o

Breakfast, lunch and coffee meetings with key community stakeholders and partners. Participation in community boards and committees, as appropriate to the person’s role and interests. Active leadership in the implementation of True Growth 2.0, through project management secondment, active participation at Network Partner meetings, enablement of growth from an infrastructure perspective, possible participation on the True Growth Alliance, etc. Attendance at dinners and community events (e.g. Board of Trade mixers) Notes of congratulations to others in our community who achieve success.

8. Introduce an ongoing practice of media relations Enhance relationships with the traditional mainstream media that serve Saint John – newspaper, radio and television and their websites. These meetings will take place within the offices of each media outlet so that we can benefit from tours, introductions, and learning about their operations as much as we are sharing information about ours. Tailor the ongoing media relations program based on feedback received during this tour. Our ongoing approach to media relations will likely include:  Adding key media contacts to your eNewsletter / stakeholder database for regular updates  Regular dissemination of newsworthy news releases  Potentially a refined mechanism for sharing information about power disruptions  Occasional story pitches  Occasional space in the commentary pages of the newspaper  Media assistance in communicating news during issues or crises situations  Informal relationship-building and requests for feedback to stay personally connected and grounded with the media

9. Clarify media relations protocols As part of your enhanced approach to media relations, there is the opportunity to clarify media relations protocols within Saint John Energy, and in alignment with the City of Saint John. Such protocols will ensure everyone is on the same page, and will instill confidence as you increase your media relations outreach.

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Accountability 10. Continue to share strategy, business plan and results with stakeholders Use the updated one-page infographic as a tool to share information to the stakeholders.

11. Formally report to the City of Saint John on Strategy, business plans, results and provide mechanisms for feedback. Formalize annual reporting to the City of Saint of John, using the Sustainability Framework as the basis of the reporting so that they receive a complete picture of what Saint John Energy is doing from the point of view of the value we provide. Ensure that senior staff and City Council receive a heads-up of any issues or crises, as part of an enhanced approach to issues and crisis communications planning. Meet with or provide short, written updates to senior staff, the Mayor and City Council as needed throughout the year

Employee Relations 12. Continue with the cascading communications protocol, so that employees are always among the first to hear of important news and announcements. Our employees are the Saint John Energy family – they are our ambassadors and community spokespeople. When communicating information broadly among external audiences, it is critical to share it with employees first (with some level of segmentation, beginning with leaders). The method of communications will depend on the message – most of the time it will be through email; for more serious messages it could be through face-to-face communications.

13. Continue with quarterly and annual meetings, lunch and learns throughout the year on topics of interest related to the business. Saint John Energy hosts quarterly meetings in the training room, and annual off-site meetings in April/May. Lunch and learn sessions are held monthly in the training room with key topics of interest related to the business and staff.

14. Continue face-to-face time through informal leader walk-abouts Leader visibility and involvement in the business, if done from a place of goodwill and servitude, can be powerful tools to boost employee engagement. Leadership makes time to informally walk about and spend time with employees in their work environments, to learn about 15

their jobs, ask questions and seek ideas to help improve the business. Leaders of one area pop in to see staff in another area, as a way to help break down silos and foster greater understanding of the whole business. They act on suggestions and keep employees posted.

15. Continue to celebrate successes Celebration of successes and employee recognition is tied to the 10 focus areas in the Sustainability Framework. Communication of the successes is done with internal (Manager Acknowledgements Process, Watts up Board) and external audiences (twitter, website, Facebook, eNewsletter and/or Annual Report). Always speak to the greater value these successes provide to the community.

Productive Partnerships 16. Continue to conduct quarterly face-to-face meetings with NB Power’s senior leaders. Senior leaders continue to take part in a quarterly meeting to discuss more strategic matters, and to help ensure overall alignment. Half of these meetings take place in Saint John, and half in Fredericton.

17. Continue to partner on Reduce and Shift Demand, the Energy Blueprint Committee, PowerShift Atlantic and other programs Continue to be an active partner in initiatives aimed at promoting energy conservation.

18. Seek formal feedback on the relationship with NB Power once per year. A semi-formalized approach to sharing feedback will give each organization permission to talk about this in a productive, relationshiporiented way. The conversation should be guided by a set of questions shared with each team in advance. You may wish having this part of the conversation facilitated by a third party. Specific action items should be identified as a result of the feedback share, when warranted.

19. Continue to cultivate the relationship with the Province of New Brunswick. Representatives of Saint John Energy’s senior team and Executive Committee of the Board will build a relationship by requesting a one-hour meeting with the Ministers and senior staff of the Department of Energy and Mines, the Department of Public Safety, and the Department of Environment to share a high-level overview of this strategy and ask them how they wish to be engaged. Take this opportunity to provide an update on your business, framed through the Sustainability Framework.

20. Provide communications support for other key Saint John Energy Initiatives and Projects 16

Measurement Lead Measures (Indicators) 1. Saint John Energy’s first eNewsletter is ready for distribution in Q3 2014, with a distribution list of at least 100 people populated in a stakeholder database. 2. Media coverage about Saint John Energy is fair to positive. 3. Reputational issues and risks are mitigated through proactive planning and response. 4. Saint John Energy can report at least six incidences where it has acted on the feedback of internal or external stakeholders, by the end of 2014.

Lag Measures (Outcomes) 1. Define and implement specified initiatives and measures to enhance our employee engagement 2. Conduct a stakeholder audit in late fall 2015 demonstrates that Saint John Energy is making positive progress in increasing knowledge about Saint John Energy’s operations and the value it provides to Saint John, and overall approval of the utility. 3. Conduct a 2015 Customer Satisfaction Survey and develop actions based on its results

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Recommendations ENERGY CONSERVATION 1. Continue to share energy conservation information and tips in all of Saint John Energy’s communications

COMMUNITY INVESTMENT 2. Continue to streamline corporate investment program to areas of social need in Saint John. 3. Continue to communicate commitment to community investment

STAKEHOLDER ENGAGEMENT 4. Continue Saint John Energy presence in social media Twitter, Facebook, and YouTube. 5. Distribute a corporate eNewsletter quarterly 6. Establish regular schedule of formal stakeholder engagement to feed into Saint John Energy's annual planning and reporting process 7. Continue informal stakeholder engagement in Saint John, on the part of Saint John Energy’s leaders. 8. Introduce an ongoing practice of media relations 9. Clarify media relations protocols

ACCOUNTABILITY 10. Continue to share strategy, business plan and results with stakeholders 11. Formally report to the City of Saint John on Strategy, business plans, results and provide mechanisms for feedback.

EMPLOYEE RELATIONS 12.Continue with the cascading communications protocol, so that employees are always among the first to hear of important news and announcements. 13. Continue with quarterly and annual meetings, lunch and learns throughout the year on topics of interest related to the business. 14. Continue face-to-face time through informal leader walk-abouts 15. Continue to celebrate successes

PRODUCTIVE PARTNERSHIPS 16. Continue to conduct quarterly face-to-face meetings with NB Power’s senior leaders. 17. Continue to partner on Reduce and Shift Demand, the Energy Blueprint Committee, PowerShift Atlantic and other programs 18. Seek formal feedback on the relationship with NB Power once per year

19. Continue to cultivate the relationship with the Province of New Brunswick 20. Provide communications support for other key Saint John Energy Initiatives and Projects

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